Clarke and Son News

In the current economic climate redundancies are becoming more and more common. Both employers and employees are having to go through the compulsory redundancy process and although the procedures have relaxed slightly since April they can still cause problems, particularly for employers. In some cases the employer will be prepared to offer a “deal” to the employee so that the employment relationship can end on agreed terms without the stress caused by having to follow lengthy and sometimes overly formal procedures. However such a deal needs to be embodied in what is known as a Compromise Agreement, which is a specific type of Agreement, created and controlled by statute, designed to end employment relationships.

Essentially the Compromise Agreement will provide for the employee to receive a sum of money as compensation for loss of his or her job and in return the employee will agree not to pursue any further claims against the employer arising out of the employment or its termination.

The benefit for the employer is that they will often receive more than their strict legal entitlement, such as the statutory redundancy payment. The benefit for the employer is that the Agreement represents finality and it removes the risk of an expensive Employment Tribunal claim from the employer following termination of the employment.

A crucial part of the procedure for a Compromise Agreement is that the employee must take independent legal advice from his own Solicitor and the Agreement will contain a certificate from the Advisor that such advice has been given. This is designed to prevent employees being pressured into signing Agreements which are not in their best interests or which do not provide them with adequate compensation for the loss of their job.

Since the taking of legal advice is essential for the Agreement to be valid the employer will invariably make a reasonable contribution to the employee’s legal costs.

If you are facing redundancy or if your employer is talking to you about a Compromise Agreement then we can advise you on your position. Contact Nick Bowers, Partner for further information or advice on any aspect of Employment Law.

Clarke & Son LLP hosted a wine-tasting and dinner for a number of commercial clients and their wives at Caviste in Overton. Three Pinot Noirs and three Sauvignon Blancs were on the menu along with an excellent selection of refreshments.

Peter Turner, Senior Partner at Clarke & Son commented:

“We believe client loyalty is key to our business and the relationship we have built up with our clients over the years is what keeps the wheels of our industry rolling. I felt the evening was a great success with good wine, food and company.”

If you would like to learn more about Clarke & Son’s Commercial Services, please contact Peter Turner on Tel: 01256 320 555

On 21 April 2009, the Prime Minister, Gordon Brown, announced the launch of the UK Homeowners Mortgage Support Scheme (HMS), which is now available to borrowers.

The Scheme is designed to give homeowners suffering from a temporary loss of income breathing space. Eligible borrowers will be able to reduce their monthly mortgage interest payments for up to two years without being at risk of losing their home during that time.

The Lenders participating in the Scheme are: Lloyds Bank Group (which includes Halifax and Bank of Scotland), Northern Rock, the Royal Bank of Scotland (which includes NatWest and Ulster Bank), Bradford and Bingley, Cumberland Building Society, and the National Australia Bank Group (which includes Clydesdale and Yorkshire Bank).

A number of other banks, building societies and specialist lenders have also confirmed that they will offer their customers HMS as soon as possible. These are Bank of Ireland (which includes Bristol and West), GMAC, GE Money, Kensington Mortgages, the Post Office and Standard Life Bank.

Lenders offering HMS will have the security of a Government guarantee if the borrower defaults.

At the same time, four other high street lenders, Barclays (including First Plus), HSBC, Nationwide and Santander (including Abbey and Alliance and Leicester) have all confirmed today they will offer comparable arrangements to HMS to their customers, while opting not to take up the Government guarantee. Customers of these institutions experiencing a reduction in income and willing to make regular monthly payments will receive a similar level of support and be encouraged to seek independent money advice.

Borrowers who are interested in applying for Homeowners Mortgage Support, or finding out about comparable arrangements should contact their lender in their first instance to check their eligibility.

For lenders offering HMS with the Government guarantee, the borrower must:

• Have bought their home before 1st December 2008;
• Be an owner-occupier - the scheme is not open to buy-to-let or investment properties
• Have an outstanding mortgage of less than £400,000 and savings of less than £16,000.
• Have a regular household income and should be able to make a minimum contribution of 30 per cent of the total interest payment
• Have talked through other options with their lender and have been making regular payments for at least five months.
• Have sought independent money advice.

The Government will continue to work with smaller lenders to encourage them to either offer the Scheme to their customers, or put comparable arrangements in place.

For more information on Buying and Selling your Home or Re-Mortgaging, please contact Paul Cowdery on Tel: 01256 320 555

The recent introduction of Energy Performance Certificates for all Commercial Properties being sold or rented from last October has led to a wave of providers to offer services at knock down prices, whilst not necessarily providing a legally valid certificate.  Please see the attached article for more information on how you can ensure your EPC provider is providing you with a valid certificate.

For more information on EPCs for Commercial Properties, please contact Charles Marchant-White on Tel: 01256 320 555.

is-your-epc-valid.pdf

The current uncertain financial climate is leading to more applications to vary Maintenance Orders which were made in more prosperous times. Agreements under Court Orders requiring (usually) the husband to pay maintenance to an ex-wife may not be sustainable due to the downturn in the economy because the husband may have had a pay cut, lost his job, etc. As a result ex-husbands are looking to renegotiate the amount they pay to their ex-wives.

A fluctuating economy also means that family lawyers are finding it increasingly difficulty to value and divide assets amongst spouses/civil partners. With a falling property market (usually) the main asset of the marriage being the matrimonial home is worth significantly less. Therefore it is more difficulty for it to provide enough funds to parting couples to support two separate households on divorce.

B Sankhla, Partner, and head of the family department at Clarke & Son LLP advises:

“Marrying couples should consider Pre-Nuptial Agreements in order to provide some economic certainty in the current uncertain economic conditions. The divorce Courts are more willing to honour agreements between parties made prior to or during the marriage.”

For more information on please contact Bhupendra Sankhla on Tel: 01256 320 555.